DEPUTY PRIME MINISTER

Departmental Investment Strategy

Yvette Cooper: The Office of the Deputy Prime Minister is today publishing its departmental investment strategy, which sets out the proposed capital and resource investment expenditure between 2005–06 and 2007–08. It also summarises the assets the Office of the Deputy Prime Minister holds and the processes by which investment decisions are made.
	Copies of the document will be placed in the Libraries of both Houses and are available on the ODPM website.

ENVIRONMENT FOOD AND RURAL AFFAIRS

Government Decontamination Service (GDS)

Elliot Morley: The Government announced on 25 March 2004, Official Report, column 55WS that they were actively considering establishing a UK-wide service to provide advice and assistance in decontamination and clean up after a deliberate chemical, biological, radiological or nuclear (CBRN) incident or a major accidental release of hazardous materials. Work on the potential costs, benefits and modalities of such a service has been going on since that announcement.
	As a result of their considerations, the Government now intend to set up a Government decontamination service (GDS), as an executive agency of the Department for Environment, Food and Rural Affairs (DEFRA). The decision is part of the cross-Government work to ensure that the UK is prepared for a range of emergencies and has been developed under the CBRN resilience programme led by the Home Office. The service will have three principal functions, aimed at streamlining our ability to decontaminate the built and open environment following any CBRN incident.
	First, it will provide advice and guidance to responsible authorities during their contingency planning for CBRN incidents, and regularly help test the arrangements that are in place. This will build on the strategic national guidance for the built and open environment which the Office of the Deputy Prime Minister and DEFRA (respectively) issued in 2004.
	Secondly, it will rigorously assess the ability of companies in the private sector to carry out decontamination operations, and ensure that responsible authorities have access to those services if the need arises. If required, the agency will also help co-ordinate decontamination operations.
	Finally, the service will advise central Government on the national capability for the decontamination of buildings and the environment in the event of a major release of chemical, biological or radioactive materials.
	The Government have in parallel been taking forward work to build on their existing capability to decontaminate buildings and the open environment. The work has included assessment of and engagement with a range of specialist contractors and the identification of appropriate technologies. This is part of the research and foundation being developed to further enhance capability and build the permanent decontamination service over the coming years.
	CBRN resilience is devolved in Scotland. Scottish Ministers decided that the GDS should be invited to provide a service in Scotland and the Scottish Executive has been actively involved in its establishment. A similar statement is therefore to be made in the Scottish Parliament.
	The Welsh Assembly Government are not responsible for CBRN resilience under the terms of the devolved settlement in Wales but has been fully consulted on the development of the GDS. The central GDS arrangements now being put into place by the UK Government will also cover Wales and the Welsh Assembly Government fully support these arrangements.

PRIME MINISTER

House of Lords (Appointments)

Tony Blair: The House of Lords Appointments Commission is responsible for recommending non-party-political appointments to the House of Lords. However, I continue to nominate direct to Her Majesty the Queen a limited number of distinguished public servants on retirement. I have decided that the number of appointments covered under this arrangement will not exceed 10 in any one Parliament.

TRADE AND INDUSTRY

Directors' Remuneration Report Regulations 2002

Patricia Hewitt: As announced in my written parliamentary statement on 25 February 2004, Official Report, column 51–52WS, my Department commissioned a report on compliance with the Directors' Remuneration Report Regulations 2002 ("the Regulations") during the course of this year's AGM season, including an assessment of changes in remuneration practices. Deloitte and Touche LLP were appointed to carry out the work following a competitive tender process. Their report is today being placed on the DTI website at: http://www.dti.gov.uk/cld/Deloitte–Rep–DRRR–2004.pdf and in the Libraries of both Houses.
	The report underlines the positive impact of the regulations and the effectiveness of the Government's action in subjecting directors remuneration to closer scrutiny by shareholders. It reveals high levels of company compliance with the regulations, better clarity of disclosure on remuneration, improved communication between companies and their shareholders, and changes in companies' remuneration policies and practices improving the link between pay and performance. It also suggests that further legislation in this area is neither necessary nor desirable and that further improvements to disclosure and the linkage between pay and performance are best pursued through the development and implementation of best practice guidelines.
	In the circumstances, whilst I will continue to keep the position under review, I have concluded that further changes to company law requirements in this area are not needed at this stage.
	The report does suggest some minor changes to the regulations in order to clarify what is required and improve transparency and the quality of the information provided. My Department will be considering the need for these changes in the light of views expressed by stakeholders and better regulation principles. If, as a result, we consider that changes are made, these should not involve additional costs or additional regulatory burdens on companies of shareholders.
	In my February statement, I welcomed the action taken by the Association of British Insurers and National Association of Pension Funds, and by the Confederation of British Industry, in producing guidance on directors' contracts. The report provides a basis for the further development of this guidance. I now call on these groups to work towards providing a common set of guidelines by the end of the year.
	While the report is encouraging, there is no room for complacency. The challenge for remuneration committees and their advisors remains to produce rewards packages which tie pay and performance targets to the creation of long term value for shareholders and are transparent to shareholders. Shareholders, for their part, should satisfy themselves that remuneration arrangements for directors are in the best interests of the company. They must also be vigilant and ensure that situations where directors enjoy rich rewards whilst companies perform poorly and shareholders and employees suffer are challenged.

Regional State Aid Reform

Douglas Alexander: On 14 June 2004, Official Report, columns 19–20WS, my right hon. Friend the Minister for Industry and the Regions, announced that the European Commission had published proposals for amending the guidelines that govern regional state aid, which define assisted areas and aid intensities allowed within them, for the period 1 January 2007 to 31 December 2013, and that her Department would shortly be issuing a consultation document seeking the views of all interested parties on the Commission's proposals.
	My Department today published the results of that consultation exercise and copies of the summary of responses, and the Government's latest letter to the Commission, have been placed in the Libraries of both Houses. The Commission issued a further paper on its approach before Christmas, and is to hold a first joint meeting with national officials on 1 and 2 February: it then plans to issue detailed proposals in May, for adoption in September this year. The Commission's further paper is available on its website and my Department has written to consultees drawing their attention to it.

WORK AND PENSIONS

Pension Service Partnership Fund

Malcolm Wicks: Today we are announcing a unique scheme to enhance and build on our working relationships with the Government's partners in the voluntary and community sector, including local authorities.
	The Pension Service Partnership Fund of £13 million will provide up to two years' funding to partners to undertake mainly local initiatives which will improve the take-up of older people's benefits, particularly by hard to reach groups. The aims of the fund were developed in consultation with members of the DWP Partnerships Against Poverty Group, a joint forum which includes national representatives from organisations such as Help the Aged, Age Concern and the Local Government Association.
	It is being administered under our Link-Age Programme which aims to integrate joint working between partners so that older people are provided with a more cohesive front-line service.
	There have been around 170 Partnership Fund contracts awarded to organisations throughout England, Wales and Scotland. Many of the schemes are expected to begin their work early this year. The Department for the Environment, Food and Rural Affairs has contributed towards the funding and is sponsoring initiatives that target areas of rural deprivation in England.
	A full list of the successful applicants has been placed in the Library.
	We will be monitoring the schemes closely in order to evaluate successful methods and identify innovative approaches. Subsequently we will publish details in a best practice guide aimed at the community and welfare rights audience.

Incapacity Benefit

Alan Johnson: In his pre-Budget report of 2 December, my right hon. Friend the Chancellor of the Exchequer announced our intention to expand the pathways to work service to cover the Jobcentre Plus districts covering all 30 local authority districts with the greatest proportions of working age population on incapacity benefits (IB). I would like to provide an update on work to take this forward.
	The seven pathways to work pilots are designed to test the new approach in a variety of labour markets, including where IB recipiency rates are high. This means that we are already offering work-focused support from skilled personal advisers and the range of provision and incentives available in the choices package in five of the 30 local authority districts. These are Bridgend, Burnley, Gateshead, Inverclyde and Rhondda, Cynon, Taff. Early findings are showing very promising results.
	The reason the pathways pilots are performing well is due to the hard work and commitment from all the Jobcentre Plus staff and the NHS and private and voluntary sector organisations working with them. The expansion will make full use of their experience, expertise and the lessons learnt to ensure the smooth introduction of pathways in the new Jobcentre Plus districts, many of which are already working innovatively with people on IB. We are therefore putting in place twinning arrangements between current and future districts to ensure this learning and good practice is shared at all levels.
	The new condition management programmes are a totally new concept in combining health and employment interventions to help customers to manage their health and consider work. They are a good example of the successful partnership working between Jobcentre Plus and the Department of Health, devolved administrations and local primary care trusts/health boards. We are continuing to work with medical experts and local representatives to develop equally high quality programmes for the new pathways districts.
	We will start to roll out the pathways service from the end of October 2005 onwards and when all the new programmes are in place it will mean the pathways approach will be operating in one third of the country and cover around 900,00 IB recipients. I know that there is a lot of work to be done to introduce an effective work focused interview regime and ensure high quality provision is available.
	The new pathways areas will be rolled out according to the following schedule:
	
		
			  
		
		
			 Phase 1—October 2005 Phase 2—April 2006 Phase 3—October 2006 
			 Cumbria Barnsley, Rotherham and Doncaster Eastern Valleys 
			 Glasgow City of Sunderland Greater Mersey 
			 Lancashire West County Durham Staffordshire 
			 Tees Valley Lanarkshire and East Dumbarton  
			  Liverpool and the Wirral  
			  Manchester and Salford  
			  Swansea and West Wales  
		
	
	This major expansion of pathways is designed to test a mandatory work focused interview regime and the choices package provision in all those areas with high levels of inactivity and IB recipiency rates. By extending the number of people who receive advice and support from skilled personal advisers we aim to ensure as many people as possible starting a claim for IB are able to fulfil their aspiration for a return to employment and also to reduce the numbers at risk of long term inactivity and benefit dependency, with the damaging social and economic impact that chronic ill health and inactivity has on them and the locality they live in.
	Alongside the decision to extend the current pilots to some existing IB customers, expanding the areas in the country operating pathways is the first major step in reforming IB and focusing customers on their remaining capabilities and encouraging them back to work.